Car insurance costs ‘being driven up’

Car insurance costs are being driven up and are putting added pressure on household budgets across the UK, it has been claimed.

According to the latest figures from MoneyExpert, the typical car insurance premium paid out by a British motorist has increased by almost six per cent over the course of the past 12 months.

With millions of people already struggling to become debt free, the average car driver can expect to fork out close to £700 on an annual basis to cover their motor insurance costs.

“The pressure on family finances is building from all sides with mortgages and supermarket bills rising,” said Sean Gardner from MoneyExpert.

“Motorists are already having to cope with soaring petrol prices – assuming they can actually get petrol. Insurance costs simply add to the burden.”

The Alliance Trust Research Centre said last week that British families are beginning to face up to what it sees as their financial reality and the state of their debt management situation.